SPX Support, Resistance (S/R) and Moving Averages for Trading the Week of 12/10/12

SPX support, resistance, moving averages and other levels of interest are highlighted below. The SPX closed above the 50-day MA at 1417.16 and also above the 20-week MA, so the bulls are feeling pretty good over the weekend. The 1416-1420 cluster is very important as the new week of trading begins.  If the bulls can push above 1420 and hold it for about ten minutes, the markets will acceleate higher with the SPX then attacking 1424 and 1429. The cluster at 1411-1413 offers serious support for price.  If the bears can push under 1411, a downside acceleration will occur to test 1406 and 1403 in quick order.

The 200 EMA on the 60-minute chart is 1406.30 and is a key bull-bear level. Even if weakness enters the markets, the bears got nothing unless they can push under 1406, which would be a game-changer reversing the upward market trend since Thanksgiving.  Chairman Bernanke will announce a replacement quantitative easing program on Wendesday afternoon for Operation Twist that expires at the end of the month. The media is quiet to the obvious conclusion that QE3 Infinity is currently a dud, a failure. The SPX remains 20 handles under where the Fed announced QE3. The QE actions are now becoming less effective and muddled. The Fed will be announcing a new QE4 program this week when the QE3 program already failed. Would this action only serve to further expose Emperor Bernanke as not wearing any clothes (Hans Christian Anderson)? How will the markets react? Also of interest is that the SPX remains 10 handles short of the election day top, President Obama not yet recovering from the stock market selloff after his re-election. A move thru 1412-1419 is sideways action for Monday.

·         1476

·         1475 (9/14/12 Intraday HOD for 2012: 1474.51)

·         1472

·         1468

·         1466 (9/14/12 Closing High for 2012: 1465.77)

·         1465

·         1461

·         1460

·         1457

·         1453

·         1451

·         1447

·         1446

·         1444

·         1441

·         1440 (5/19/08 Intraday HOD for 2008: 1440.24)

·         1438 (9/13/12 Fed’s Bernanke Announces QE3 Infinity)

·         1435

·         1433

·         1431

·         1429 (11/6/12 President Obama Election Top)

·         1427 (5/19/08 Closing High for 2008: 1426.63)

·         1424

·         1422

·         1420.34 Friday HOD

·         1419

·         1418.07 Friday Close – Monday Starts Here

·         1417.76 (20-week MA)

·         1417.16 (50-day MA)

·         1416

·         1413

·         1412.54 (100-day MA)

·         1410.90 Friday LOD

·         1410.51 (10-day MA)

·         1409

·         1406.30 (200 EMA on 60-Minute Chart a Keystone Turn Signal)

·         1406 (5/29/08 HOD)

·         1404

·         1403 (9/6/12 ECB’s Draghi Announces OMT Bond-Buying Program)

·         1401

·         1399

·         1397

·         1395.18 (10-month MA)

·         1394.15 (20-day MA)

·         1394

·         1391

·         1389

·         1386.12 (200-day MA)

·         1385.99 (150-day MA; the Slope is a Keystone Cyclical Signal)

·         1385.83 (12-month MA; a Keystone Cyclical Signal) (the cliff edge)

·         1385

·         1380

·         1378

·         1375.60 (50-week MA)

·         1375

·         1373

·         1371(5/2/11 Intraday HOD for 2011: 1370.58)

·         1370

·         1366

·         1364 (4/29/11 Daily Closing High for 2011: 1363.61)

·         1362

·         1358

·         1357

·         1355

·         1351

·         1348

·         1345

·         1343

·         1341 (7/26/12 ECB’s Draghi Announces Support for the Euro Starts QE Rally)

·         1338

·         1337

·         1335

·         1333

·         1331

·         1329

·         1326

·         1324